January 2010
Volume 3, Number 1
In its first edition on professional services in the climate change industry, CCBJ examines what's driving the robust growth in this segment for firms ranging from the "Big Four" assurance firms to law firms, management consultancies and financial and economic analysis specialists. These firms reported that non-regulatory drivers are doing what pro-climate policy political leaders haven't yet been able to: force large corporations to count their emissions, analyze the carbon lifecycle of their supply chain and take public action to reduce their emissions.
These forces include the increasing pressure on publicly held corporations to disclose their climate change risks and liabilities; consumers and corporate buyers demanding more sustainable products; state and regional policies; and increasing consideration of carbon and other environmental metrics in corporate performance and valuation. The increasing need to plan for climate change impacts is also driving business for the professional services firms. Including environmental consulting and engineering firms (which will be highlighted in CCBJ's next edition), CCBJ estimates the U.S. climate change consulting industry grew by over 30% annually in recent years to reach $670 million in 2008; while growth slowed to 15-20% 2009, CCBJ expects annual growth to be in the 20-30% range through 2012 at least. The edition also includes analysis of global climate change consulting.
Inside this Edition
Professional Services Firms Move Further Into Climate Change Industry. From boutique management consultancies with fewer than 10 employees to the largest accounting and assurance firms, professional services consultancies are gaining strong traction with climate-change related services. Many are encroaching on market territory traditionally dominated by environmental consulting firms.
Big Four Accounting Firms Take Leadership Roles. Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers have grown their climate change and sustainability practices as their clients have responded to public pressure, regulations, and financial and physical risks stemming from climate change, water scarcity and other environmental issues. Clients range far beyond energy and heavy industries to include financial services, consumer packaged goods, pharmaceuticals, technology, entertainment, hospitality and other industries.
Law Firms Cultivate Climate Change Practices. The recession has been hard on law firms, but the development of climate change law practices-including carbon financing, renewable energy development, cleantech, green building, low carbon transportation, corporate sustainability-has been a bright spot. Not since the surge in work associated with Sarbanes-Oxley financial reporting overhaul have firms seen so much growth from one issue, according to one leading attorney. Law firms interviewed include: Stoel Rives, Baker & McKenzie, Balch & Bingham, Hogan & Hartson, Mowrey Meezan Codding Cloud, and Morrison and Foerster.
Profiles of Irbaris, IHS/CERA, The Brattle Group, CantorCo2e, PA Consulting, Booz & Co. and Navigant Consulting reveal how firms position themselves for market share in climate change consulting.
Look inside the Professional Services Edition
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